**Question**: Blue ocean strategy combines the advantages of both cost-leadership and differentiation. Therefore, all firms should pursue the blue-ocean strategy.- True- False**Explanation**: This statement addresses the blue ocean strategy, a concept where businesses seek to create new market spaces and opportunities, hence termed ‘blue oceans,’ as opposed to competing in overcrowded industries (red oceans). By combining cost-leadership and differentiation, a firm aims to achieve high value at low cost. However, while the approach can be advantageous, it may not be suitable for all firms due to varying industry dynamics and organizational capabilities.

Cost strategy is based on simplicity. Cost leadership aims to reduce costs as much as possible in…

Answered: Blue ocean strategy combines the…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Whatever strategic approach is adopted by a company to deliver value, & nearly always requires Select one: OA matching corporate identity with the corporate culture in order to integrate effort and build sales momentum OB. that management undertake formal planning sessions with functional departments to ensure productivity improvement OC. the identification of strengths and weaknesses within the company OD. performing value chain activities differently than rivals and building competitively valuable resources and capabates that rivals cannot readily match O E constant efforts to thwart entry of new rivals and their attempts to create differentiated products with unit costs above price premium
Read the following statements and select if they are true or false. a. The achievement of economies of scope is the most important benefit of unrelated product diversification. True False b. In a related constrained diversification at least 95% of the revenues comes from a single business True False c. Unrelated diversification is when more than 70% of the revenues come from different business. True False d. In related linked diversification all businesses are linked. False True
The principal purpose of a business strategy is to guide a firm towards greater success or profitability. Required: Discuss, with appropriate examples, the significance of the following in the formulation or implementation of strategy: An analysis and understanding of a firm’s external environment. A merger or joint venture.
Match the description to the type of generic strategy in the framework proposed by Michael Porter (1985). Once you click Check, the correct matches will remain in place, while the wrong matches will return blank. Generic Strategy |||| Differentiation focus Description Competitive advantage comes from selling a differentiated product or service (e.g. a better-quality product with some unique features compared to rivals) to a broad market (e.g. many customer segments and/or broad geographic area). Competitive advantage comes from having lower costs than competitors across a wide market. By adopting this strategy, a firm aims to sell a lower cost product to a broad market (e.g. many customer segments and/or a broad geographic area). The strategy of offering an undifferentiated product or service to a small segment or in a restricted geographical area. Competitive advantage comes from a product/service that is unique in some way to rivals and is targeted at a particular market niche. In…
You and a group of enthusiastic colleagues have recently graduated from university, and are eagerly discussing a possible joint entrepreneurial venture, focusing on the production of environmentally friendly electric vehicles. To fund this new venture, the team has been advised to come up with a solid implementation plan, supported by the strategy implementation framework to include detailed information on the business concept, strategic vision, mission, revenue model, financial objectives, and projections and much more. The rising use of hybrid and environmentally friendly electric vehicles (EVs) represents a significant shift in the automotive industry, with various factors contributing to its increasing popularity, environmental awareness and climate change concerns topping the list. Considering how competitive the business sector is today, it is important that you also consider various alternative organizational strategies, as well as develop a sustainable competitive advantage, to…
Discuss Value Chain Management by addressing the following: What are the total costs associated with producing and shipping a pair of slim-fit denim jeans to the end customer and how much is their profit? How does their “radical transparency” strategy help them compete?
1) Explain why your company needs to consider all of these perspectives in developing strategy.(2) Explain why you chose the goals and how the goals are aligned with the mission, vision, and purpose you state in Task 1. VISION Creating a happier and sustainable world is our aim, where coexisting is natural. We believe that every biscuit we produce brings us closer to a healthier lifestyle and a greener future. Each snack is a small but significant contribution towards our vision. MISSION To nourish both the body and soul, Petit Biscuits endeavours to create a delectable assortment of organic treats while simultaneously promoting ethical business practices that benefit the environment. PURPOSE Petit Biscuits is driven by the purpose of making mindful snacking accessible to everyone. Through our products, we aim to offer a variety of biscuit options that align with diverse dietary needs and preferences by also fostering a culture of conscious eating, promoting sustainable sourcing,…

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Blue ocean strategy combines the advantages of both cost-leadership and differentiation. Therefore, all firms should pursue the blue-ocean strategy. O True O False